new text begin [216C.441] MINNESOTA INNOVATION FINANCE AUTHORITY.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given them.
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new text begin (b) "Advisory task force" means the advisory task force of the Minnesota Innovation
Finance Authority.
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new text begin (c) "Authority" means the Minnesota Innovation Finance Authority.
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new text begin (d) "Clean energy project" has the meaning given to "qualified project" in paragraph
(k), clauses (1) to (4).
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new text begin (e) "Credit enhancement" means a pool of capital set aside to cover potential losses on
loans made by private lenders, including but not limited to loan loss reserves and loan
guarantees.
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new text begin (f) "Energy storage system" has the meaning given in section 216B.2422, subdivision
1, paragraph (f).
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new text begin (g) "Fuel cell" means a cell that converts the chemical energy of hydrogen directly into
electricity through electrochemical reactions.
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new text begin (h) "Greenhouse gas emissions" has the meaning given to "statewide greenhouse gas
emissions" in section 216H.01, subdivision 2.
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new text begin (i) "Loan loss reserve" means a pool of capital set aside to reimburse a private lender if
a customer defaults on a loan, up to an agreed upon percentage of loans originated by the
private lender.
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new text begin (j) "Microgrid system" means an electrical grid serving a discrete geographical area
from distributed energy resources that can operate independently from the central electric
grid on a temporary basis.
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new text begin (k) "Qualified project" means:
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new text begin (1) a project, technology, product, service, or measure that:
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new text begin (i) reduces energy use while providing the same level and quality of service or output
obtained before the application of the project;
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new text begin (ii) shifts the use of electricity by retail customers in response to changes in the price of
electricity that vary over time, or other incentives designed to shift electricity demand from
times when market prices are high or when system reliability is jeopardized; or
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new text begin (iii) significantly reduces greenhouse gas emissions relative to greenhouse gas emissions
produced before application of the project, excluding projects that generate power from the
combustion of fossil fuels;
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new text begin (2) the development, construction, deployment, alteration, or repair of any:
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new text begin (i) project, technology, product, service, or measure that generates electric power from
renewable energy; or
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new text begin (ii) distributed generation system, energy storage system, smart grid technology, microgrid
system, fuel cell system, or combined heat and power system;
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new text begin (3) the installation, construction, or use of end-use electric technology that replaces
existing fossil fuel-based technology;
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new text begin (4) a project, technology, product, service, or measure that supports the development
and deployment of electric vehicle charging stations and associated infrastructure;
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new text begin (5) agriculture projects that reduce net greenhouse gas emissions or improve climate
resiliency, including but not limited to reforestation, afforestation, forestry management,
and regenerative agriculture;
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new text begin (6) the construction or enhancement of infrastructure that is planned, designed, and
operated in a manner that anticipates, prepares for, and adapts to current and projected
changing climate conditions so that the infrastructure withstands, responds to, and more
readily recovers from disruptions caused by the current and projected changing climate
conditions; and
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new text begin (7) the development, construction, deployment, alteration, or repair of any project,
technology, product, service, or measure that:
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new text begin (i) reduces water use while providing the same or better level and quality of service or
output that was obtained before implementing the water-saving approach; or
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new text begin (ii) protects, restores, or preserves the quality of groundwater and surface waters,
including but not limited to actions that further the purposes of the Clean Water Legacy
Act, as provided in section 114D.10, subdivision 1.
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new text begin (l) "Regenerative agriculture" means the deployment of farming methods that reduce
agriculture's contribution to climate change by increasing the soil's ability to absorb
atmospheric carbon and convert the atmospheric carbon to soil carbon.
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new text begin (m) "Renewable energy" means energy generated from the following sources:
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new text begin (1) solar;
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new text begin (2) wind;
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new text begin (3) geothermal;
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new text begin (4) hydro;
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new text begin (5) trees or other vegetation;
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new text begin (6) anaerobic digestion of organic waste streams; and
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new text begin (7) fuel cells using energy sources listed in this paragraph.
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new text begin (n) "Smart grid" means a digital technology that allows for two-way communication
between a utility and the utility's customers that enables the utility to control power flow
and load in real time.
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new text begin Subd. 2. new text end

new text begin Establishment; purpose. new text end

new text begin (a) By October 15, 2021, the Minnesota Innovation
Finance Authority Task Force established in this section must establish the Minnesota
Innovation Finance Authority as a nonprofit corporation under chapter 317A and must seek
designation as a charitable tax-exempt organization under section 501(c)(3) of the Internal
Revenue Code of 1986, as amended.
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new text begin (b) When incorporated, the authority's purpose is to accelerate the deployment of clean
energy and other qualified projects by reducing the upfront and total cost of adoption, which
the authority achieves by leveraging existing public sources and additional private sources
of capital through the strategic deployment of public funds in the form of loans, credit
enhancements, and other financing mechanisms. The initial directors of the nonprofit
corporation must include at least a majority of the members of the task force and must
include the commissioner of commerce or the commissioner's designee and the commissioner
of employment and economic development or the commissioner's designee. The task force
must engage independent legal counsel with relevant experience in nonprofit corporation
law and clean energy financing.
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new text begin (c) The Minnesota Innovation Finance Authority must:
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new text begin (1) identify underserved markets for qualified projects in Minnesota, develop programs
to overcome market impediments, and provide access to financing to serve the projects and
underserved markets;
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new text begin (2) strategically use authority funds to leverage private investment in qualified projects,
achieving a high ratio of private to public funds invested through funding mechanisms that
support, enhance, and complement private investment;
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new text begin (3) coordinate with existing government- and utility-based programs to make the most
efficient use of the authority's funds, ensure that financing terms and conditions offered are
well-suited to qualified projects, and ensure the authority's activities add to and complement
the efforts of these partners;
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new text begin (4) stimulate demand for qualified projects by serving as a single point of access for a
customer to obtain technical information on energy conservation and renewable energy
measures, for contractors who install energy conservation and renewable energy measures,
and for financing to reduce the upfront and total costs to borrowers, including through:
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new text begin (i) serving as a clearinghouse for information about federal, state, and utility financial
assistance for qualifying projects in targeted underserved markets, including coordinating
efforts with the energy conservation programs administered by the customer's utility under
section 216B.241 and other programs offered to low-income households;
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